🦜 PerchPulse - The USA Market Update January 2023 🦜

A warm welcome to the January issue of PerchPeek’s US Market Monthly update!

Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.

A fly-by summary

  • 82% of companies that relocate their employees do it via outsourcing, not in-house, but 60% aren’t using tech for talent mobility, and other key findings from KPMG report
  • From the continued rise of remote and hybrid working to trials of a four-day working week, here are the top four workplace trend predictions for 2023
  • PerchPeek Spotlight on NYC’s rental market in 2023 - predicted cooling of demand and gradual decline in costs, but the city will remain popular for new residents
  • Temporary accommodation is pricey at 150-200% of the cost of a long term rental but is a must for relocating employees - here’s how to support your teams
  • Details on new public transit extension projects in five major cities: New York City, Boston, Los Angeles, San Francisco and Washington, DC - to help support your talent

Talent strategy: Key findings on global mobility strategy from KPMG report

Professional services network KPMG have published their 2022 ‘Global Assignment Policies and Practices Survey’, and it’s super interesting reading for those in global mobility strategy.

Following the survey of 375 global mobility leaders across 25 countries, the findings shed light on how GM programmes are continually evolving, and identify these areas as top priorities:

  • Compliance and global risk management
  • Supporting business objectives
  • Controlling programme costs
  • Adaptability to changing business requirements

Selected key findings:

  • In order to focus on talent experience, not transactions, 82% of survey participants make use of external relocation management services rather than manage it in-house, suggesting that this approach is an invaluable way to save time and resource in HR. 
  • 40% have moved to talent tech, including most innovative companies, such as many of the leaders in the tech industry where the best talent is often attracted - suggesting that tech-driven solutions in this field are proving to be a valuable asset to People teams

As well as being a massively insightful snapshot of how global mobility strategy has developed in 2022, this report also identifies clear opportunities for future advancement. If you have any questions, or insights of your own to share, reach out to PerchPeek!

Talent strategy: Forbes’ top four workplace trend predictions for 2023

The world of work has changed dramatically in the last few years, with remote or hybrid working becoming the norm across various industries worldwide. 38% of US workers were allowed to work fully remotely in 2022, while 58% could work from home at least one day a week.

So, are these trends here to stay? Here are Forbes’ top four workplace predictions for 2023:

  1. Remote and hybrid working - It’s safe to say this working practice isn’t going away anytime soon. Reports suggest having this extra flexibility around work increases both worker happiness and productivity - win-win!
  1. Worker surveillance - With more employees working remotely, some businesses are calling for processes and tools to monitor output. It’s a controversial matter as it brings up questions of both trust and data privacy.
  1. Online work tools meeting the metaverse - due to the trends we’ve mentioned, collaborative working tools need to be up to scratch! Projects currently in development to make these tools increasingly immersive include Meta’s Horizon Workrooms and Microsoft’s Mesh platform.
  1. Four-day working week - Following trials of this model in several countries in 2022, a similar trial will take place in the US in 2023.

At PerchPeek we’ll be keeping our fingers (or feathers!) on the pulse of how these predictions play out, and we’ll make sure to keep you updated as they evolve!

Home-finding: PerchPeek Spotlight on NYC’s challenging rental market

To help People teams support relocating employees searching for rental properties in New York, here’s PerchPeek’s spotlight on the city, with a summary of the market in 2022, and predictions for 2023 according to property platform Streeteasy:

  • 2022 was a tough year for renters - 48% of NYC workers could only afford 10% of the properties available in the summer, unless they spent over 50% of their income on rent.
  • Rental demand is predicted to cool in 2023, with asking rents decreasing as a result, but they’ll be slow to come down due to the limited availability of rental units.
  • Despite ongoing challenges around finding rental properties, there isn’t expected to be any slowdown in the rate of new residents flocking to this ever-popular city!

To support home-hunting employees, here are some tips from PerchPeek:

  • Hybrid or remote working policies let staff live further from the office, in cheaper areas
  • Provide employees with a cheatsheet of low-cost areas to live
  • Implement a car allowance, to open up the option of commuter areas to live
  • Help staff link up to secure shared accommodation

Home-finding: Key insights into temporary accommodation for relocating employees

If you support staff relocating domestically or from abroad, you’ll be aware of the competitive and fast-moving nature of rental markets in major cities like NYC, Seattle and Austin.

Home-hunters need to be in their new city to attend viewings quickly, meaning temporary accommodation is a must at first.

Here are the latest insights from PerchPeek’s US experts on short-term housing:

  • Temporary accommodation is necessary because it takes time to secure a long term rental. In Seattle movers might need to spend just 2-3 weeks in temporary housing, whereas in NYC it’s more like 4-6 weeks.
  • PerchPeek’s US experts advise that movers should be prepared to pay 150-200% of the cost of a long term property; this applies to major cities on both the east and west coast.
  • If it fits with the employee’s company policy, we often recommend Airbnb and Vrbo as they have a wide range of listings and filters to help narrow down the search!

It’s important to manage expectations around temporary housing costs and timings. Relocation packages should also be reviewed regularly to ensure they allow for a longer stay, and vary to cater to the long term home search requirements in different markets.

Support your talent: Five new public transit expansions in major US cities

When it comes to navigating major US cities, any public transportation advancements are very welcome news! Here’s the scoop on five public transit projects completed at the end of 2022:

Boston - MBTA Green Line extension project, adding nearly five miles to the light rail line, with five new stations north of Lechmere

Los Angeles - New light rail route known as the K Line, linking LAX airport with the E Line (Santa Monica to downtown LA) and the C Line (Redondo Beach to Norwalk)

New York City - $11 billion project bringing Long Island Rail Road trains to Grand Central (partially rolled out)

San Francisco - Central Subway, an extension of the Metro T Third Line, connects with Bay Area Rapid Transit trains and the Caltrain

Washington, DC - The Silver Line Extension has added six stations to the line, including one at Washington Dulles International Airport

It’s a great idea to make relocating employees aware of new public transit options. It’ll help them navigate their new city, letting them explore their surroundings and settle in well. Plus, it might open up alternative options when choosing a neighbourhood to live in, if it suddenly means the commute from that area would be a breeze!

 

We hope you enjoyed this month’s update, and that your 2023 is off to a great start!

If you have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form at the bottom of this page.

Thanks for reading, and see you next month!

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